United Rentals, Inc. (NYSE:URI) Q2 2019 Earnings Conference Call - Final Transcript

Jul 18, 2019 • 11:00 am ET


United Rentals, Inc. (NYSE:URI) Q2 2019 Earnings Conference Call - Final Transcript


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Jessica T. Graziano

the second quarter was down about 7% year-over-year.

When we look at the business pro forma, we're pleased to have delivered a quarter of solid growth and better margins as well as robust free cash flow and strong returns. The integrations are progressing well, albeit a little slower than expected and the team did a great job managing through historically bad weather. Most importantly, the operating environment remains healthy and our customer confidence measures are positive going into the back half of the year, so why the change to guidance?

Well with six months behind us, we would typically look to refine our initial ranges at this point in the year. As we model the impact of what was a slower fleet build than we originally expected in Q2 and we assess our fleet productivity for the rest of the year, the right thing to do was to pull back a little on the growth capex, that's exercising the capital discipline you expect from us.

As you take that through the P&I, the highest part of our revenue and adjusted EBITDA ranges are likely out of play and we want to be clear about what we believe we can reasonably deliver for the year. We're making a modest trend that still has our full year coming in well within our original guidance, and these changes will result in our delivering higher free cash flow than originally expected.

Now let's move on to your questions. Jonathan, will you please open the line?